Woods Company is divided into two operating divisions: Battery and Small Motors. The company allocates power and general factory costs to each operating division using the direct method. Power costs are allocated on the basis of the number of machine hours and general factory costs on the basis of square footage. Support department cost allocations using the direct method are based on the following data:

Required:

1. Calculate the allocation ratios for Power and General Factory.

2. Allocate the support service costs to the operating divisions.

3. Assume divisional overhead rates are based on direct labor hours. Calculate the overhead rate for the Battery Division and for the Small Motors Division. 

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Overhead costs Machine hours Square footage Direct labor hours Support Departments Power $220,000 2,000 5,000 General Factory $430,000 6,000 1,500 Operating Divisions Battery Small Motors $176,000 3,000 4,000 18,000 $105,000 1,000 12,000 60,000